Making Profit With Real Estate: Property Management

           This is a continuation of a post I had started yesterday.  I did not use a numbering system in the assignment I turned but wondered if it might be easier to read.  Meanwhile, it has gotten more lengthy.

Property Management

            I would rather "flip" properties than to use them as rentals.  Roland thought the ideal rental would be commercial property - renting out space to doctors, specifically or manage on office building.  That is something we have never done, but we did have two rental properties for family living.  There are different ways to be in property management. 

1.       Sometimes Roland would (and still does) look at commercial properties that he could use to rent out office space or floor space.  We had actually looked at a squirrely layout in Sandy - there were 9 different rooms I think and most included sinks.  He said it had been used as a daycare at one time but he was thinking it might make good offices for doctors.  The appearance of the establishment was residential, but most of the buildings around it were used for commercial - if used at all.  Unless the doctor had clients living in that part of Sandy whose only option of transportation was their feet, I don't think it was the most ideal location and was in need of cosmetic repairs in order to invite the public to want to see a doctor in that establishment.

2.       We did have two different houses that we used as rental property.  The first was the house we ended up living in when we moved to West Valley.  At the time of purchase we had no intentions of moving into it.  As usual, the family was recruited to spruce up the appearance.  I took this picture before it was ready as we working on it.  

I

          I took a lot more, but currently this is all I can find.  While working on it, Biff enquired if we had any renters in mind or if he could possibly move in.  I think it was a good experience for him to be out on his own.  Sadly it lasted only a couple of months.  In December of 2007 he was in an accident that totaled the car he needed as transportation and as things didn't seem to be working out with his roommates, he used it as an excuse to get out.

          Our next renter was the daughter of a ward member who needed a second chance.  If the declining economy hadn't been such an issue with the job market, they may be living there still as Roland had contracted a lease/purchase option in which they were actually paying more than expected rent, but the money was to be accumulated to use as down payment for purchasing when they finally qualified.  They could no longer make payments, nor could we on our current house in Kearns.  We ended up losing our house in Kearns and moved to our West Valley Property (see here and here) 

           Meanwhile we had purchased another property in Kearns from a neighbor who was also having financial problems.  He had used it as a rental for as long as we had known him.  We continued with rental, but had not made the best of selections with our renters.  The last couple we had in our Kearns rental moved into the neighborhood about five or six months before we moved out.  It was their intent to purchase the property when the timing was right.  Unfortunately it was never right for them.  They both lost their jobs and we ended up doing a quick claim deed returning it to the neighbor we had initially purchased it from.

3.       I posted about the trauma of getting into our rental when we first moved to Oregon.  My third example of a third party property management. You could purchase several properties but allow another a percentage to collect rent, enforce rules and so forth.  I used Neil Co as my reference as it is the only property management that I have dealt with personally.

          I had actually created a post recommending not to use Neil Co at Century 21, but since have reverted to a draft - though I'm still not happy with them overall, they did seem to be on top of it when we called for maintenance issues. Getting in and out was my major issue but I really loved the house where we live.  I really thought I would miss this house after we left, but really have not given it a second thought.  That's really impressive too. 

I suppose I did have six to begin with, but as I did not go into as much detail with those examples, I wasn't certain that I had covered six examples.  Now that I see it outlined this way, I can see where I had used at least seven in the assignment I turned in.  Next post:  Gravy Investments.  Aren't you excited?

Making Profit With Real Estate: Resell and Flipping

          Last week I created a post about writing my assignment in first person wondering if I might get discredited for doing so.  Also, I thought it rather challenging to come up with 750+ words (I think I ended up with 753) Not only did I receive full credit but a comment from my instructor said that he had been entertained.  That was a bonus as it had not been my intent to entertain.  Perhaps I'll touch more upon it following the comments for this week's assignment which may take more than one post as I have several examples and well over 750 words.  I had actually started out with eight different examples, but felt it best to revise my assignment in order to keep it to less than 1,000 words. 

          So here is a rough outline accompanied by mostly personal examples - though I did start out by mentioning the A&E's former television series called "Sell This House" and ended with the mention of HGTV's "Property Bros" and  "Fixer Upper".  There are many many ways to use real estate for investment purposes.  Here are some:

 Resell and Flipping

                 Today's American Dream seems more than just owning property, but to make money from property investments.  Purchasing houses at a low market rate, fixing them and flipping them appears to have become a hot investment commodity.  There are some who have the knack for it and some who don't.  I DON'T HAVE THE KNACK.

1.       Realtor's get a commission on what they sell. Some realtor's won't even bother with the type of housing that Roland has often listed - but he has worked with many investors who are willing to flip the property.  They will purchase the "fixer upper" for less than 100,000 and end up selling it for almost three times the amount - depending on the neighborhood, the timing of the market and so forth.  They end up with more money in their pockets than did Roland.  Thus Roland decided to hop on the bandwagon of real estate investments.  Fortunately he had partnered with someone for each, but still . . . I didn't enjoy it overall.

2.       I remember four properties having been purchased for "Flip" purposes.  The first and third are the ones I remember best.  Both in Midvale.  The first was a shared driveway and hidden location.  I think the hardest part about the property was the land itself.  Lots of overgrowth in the way of weeds and trees, etc.  Roland decided that it would be a family project and we would spend weekends going out to clear the land.  What was he thinking?  None of us are landscapers.

          I remember clearing out items in house number 2.  I liked the house itself and had considered living there, but we couldn't afford it.  Jenna was just a baby and the outside deck included about a million steps.  I was afraid of each of us trying to walk on it during the winter months.  I didn't particularly like the area where the house was located.  I never even saw house number 4 (his partner did everything and spent too much money;  it was our last "flip"

          House number 3 provides the most horrible memories.  I refer to it as the Nightmare on Oak Street.  Unlike the first house in Utah that was hidden from the average driver's view, the house on Oak Street could be seen from a high traffic area.  There was always interference from the city.  I could not take Jenna as I was afraid of her falling into a hole or something. 

          I think it was listed as a one bedroom house.  There was a garage that Roland had wanted to convert into another bedroom but after it was gutted, a wind blew down the outside wall and created a more costly expense.  This is the house that we had been working on when I posted  this story.

          My next three posts are Property Management, real estate and what I like to call "Gravy Investments" -  which I will explain. And possibly I'll reminisce my first assignment but not post the assignment itself.  Though my instructor says he was entertained, I reread and was bored with it.  So if this subject doesn't interest you, you may just want to wait until next week before continuing with reading this blog.  But hey, thank you for tuning in.

FLOORED AGAIN part 2

The assignment for last week in my management class was on the Associations with Decision Making Process.  Our topic: Panera Bread.  I did some research and was able to put my thoughts together by Wednesday afternoon.  It is the earliest I have ever turned in an assignment for that class.  It was graded right away and I had received full credit.  Nice.

This week we don't have a written assignment.  Our discussion post is on Strategic Planning: Mission, Vision, and Goal Statements.  It needs to be 250 words and of course references.  The topic: the public library.  Are you kidding me?  That just happens to be where my passion lies right now.  Words and thoughts poured out of me. Initially, there were over 600 words.  I kept cutting it down.  This morning my post looked something like this (grey words were not posted to my discussion but kept for this blog)

                "In an article found in the Local*, Margaret Jakubcin (2007) gives ten reasons why we need local libraries - even if we have never even been there as a patron.  I agree wholeheartedly as the library does benefit so many individuals in the community.  

          "This has been a really hard class for me as  I don't have much passion for business.  I moved from a small metropolis of over a million people in 110.4 square miles to a rural area of about 107,00 people living in a stretched out area of over 5,100 miles.  Our city has a volunteer fire department, volunteer mayor, volunteer board members, and volunteers who run a second-hand store (where there is no employment).  There are not a lot of job opportunities here and I'm fine with it.  I have never had the desire to work for a prestigious company or become the CEO of anything.  I have worked for chain employment companies, but have just felt lost in the system and don't care for it.  

          "In order to get the most benefit from this class, I've had to view our education from a different angle; to find the values that apply to my own personal life and to the community in which I am currently living and trying to serve.  I know SWOT and decision making are already applied within the democracy of our existence.  We have some great leaders in this community, but the communication between cities and span of control seems to lack among all the cities as a whole with certain issues. They seemed to do well as a county library system, but evidently, that was not always the case.

          "When my family first moved to Douglas County, it seemed a hard adjustment for us to go from libraries being open from 40-56 hours a week to just 12-24.   From my understanding, the libraries in the county (where I currently reside) had all run independently at one time, but now they function in one system similar to the one that we left whereas we can place a hold on an item in another city and have it delivered to us rather than having to drive to each library to find it.  However, with each passing year, hours have been cut because the system has been threatened with a lack of funding.

          "There are ten libraries in our county and all are in jeopardy of closing.  The mission statement is to promote library awareness and save our libraries by increasing taxes.  This would cost taxpayers roughly 44 cents a day, or 5.50 a month or 66 dollars a year.  Just recently, I agreed to be on the board of our local library.  We don't know what the outcome will be on November 8th.  If the bill doesn't pass, the libraries will close and so our vision statement has been based on speculation about what will happen if the library does close or what improvements can be made if the bill does pass.  I know that by using statements for Vision, Mission and Values, we can organize the future of our community (Gottlieb, 2007)"

 *I found the initial reference in my binder of information for board members; original site (from where it was printed) no longer exists but have since come across the website The Literary Pursuit.

 

 This is my last week for the module.  Thus this morning I had to take a survey on my instructor and the course itself.  Next week I will start a new class - I'm guessing in College Algebra but don't actually know at this point. Overall,  this online schooling thing has been a productive journey.

FLOORED AGAIN part 1

It has been a major struggle for me to post discussions or write the assignments for my management class.  As I've already mentioned, I lack the passion, and yet I feel there is strength in what I'm learning if I but apply. I've noticed that I've made some huge grammatical errors to past posts . . . I'm not even going to try to correct them - at least not right now.  My apologies to those of you who have struggled through.  Hey, but thanks for being interested enough to continue.

We (students in any class of an online university) don't have verbal discussions in our classes as we don't all live in the same state or time zone . . . we have written discussion.  All my other credited classes required at least 150 words for our initial post and 50-75 words in comments made to other students.  This class requires more than 150 words - and references - and they have to be cited.  I actually lost points that first week because I hadn't cited. 

          My first discussion topic was on the span of control.  

Span of Control means the number of employees that can be managed efficiently and effectively by a manager. There are two types of span of control:

1. Narrow span of control: In a narrow span of control, a single manager or supervisor oversees only a few employees. This normally results in a tall organization – and organization with many levels of authority.
2. Wide span of control: In a wide span of control, a single manager oversees a large number of employees. This normally results in a flat organizational structure – one with very few levels of authority.

We had to answer three questions. 

1. You are a manager who works directly with employees that are new to the company. Do you want to have a narrow span of control or a wide span of control? Why?
2. You are an experienced employee who has worked for a company for many years. Do you want to report to a manager who has a wide span of control or a narrow span of control? Why?
3. You manage a team of employees. The owner of your company has asked you to report how many sales were generated by social media sites such as Facebook and Twitter. You have no time to do the report - one of your employees must do it. Tell us how you would use the delegation steps to decide which employee should create the report for your owner

 This was my first post:

I would hope that all of my employees would be able to work well together and follow instructions to get the job done well and on time. I would want to have a narrow span of control.  I know that there are some people who catch on quickly, while others may not.  I would like to show to my employees how to do something and be able to trust them to discipline themselves and get the work done.  I am happy to help when they haven't quite grasped something and would hope they would come to me if they do not understand something.  I don't wish to watch over them constantly.  I have obligations as well.  I personally would rather manage just a few employees than many.

Being an employee isn't any different than being a manager although I would prefer that the manager could walk away and let me do my thing without standing over me every single minute.  So I guess I would want the span to be wide. I am a good worker. If my boss has given me a specific assignment and deadline, I can get the job done and will ask if I need assistance.  Just as I would not want an employee to fear me, I do not fear my boss.

There are many people who have facebook accounts, however, not all users are wise.  I would choose someone on my team who has used the social media wisely and who is most resourceful and tell him/her  that I have a deadline to meet and I need him/her to get the word out and will see that he/she gets full credit for the work which has been done.  We all have talents and can utilize each talent for the benefit of the company. We must pull our resources together and work as a team just as the elements, string and tail each plays a vital role in kite flying.

My assignment for that week was on Organizational Structure.  The subject was on a company I had never heard of before: One Smooth Stone, which is a theater business and sounds like a good company to work for.  They are performers who entertain at sells conventions and motivational meetings and so forth.  My attitude toward the subject of attending said convention or seminar is briefly mentioned here.

I received full credit for my assignment.  I did not do so well at the assessment.  That first  week had convinced me that I'd be doomed in the class as I expected that each week would be harder for me with this less than wonderful attitude I have.  But I'm happy to say that I showed improvement by the second week.

The second week my post needed to be on the functions of management.  I posted the following:

The four functions of management are planning, organizing, leading and controlling.  I'm happy to see in this video (Hartzell, 2013) points out that management is needed in more than just sales.  Management is needed when conducting classes or raising funds for charity (SW project, 2015) This helps me focus better to understand management is not just about job and income - it involves so many aspects of our lives.

 I believe my weakest function is with controlling - following up to see if everyone else has followed through.  I think that because I have done my part, everyone else has, which is not always the case.  I don't know that I've had great examples to follow within the workplace.  But I do have a great example of management at home - only it's my husband who does the follow-up to find that our sons have not cleaned their rooms, or finished with their duties in the kitchen or what have you.  I need to become more observant.  I think I'm pretty good at planning, however.

 I really can't think of any outstanding managers that I have worked under.  Two of my  "managers"  were let go, probably because they lacked in management skills.  One quit because of confrontations which I don't understand.  I remember telling one of my "replacement" managers that I thought it was really important for us to have a meeting in order for us to communicate and all be on the same page.  She did have her meeting, but I wasn't invited.  I didn't see that her management skills were any better than the one she replaced.  Morale had actually gone done, as I recall.

 This video (Hartzell, 2013) also points out that we don't see half of the functions that our managers do.  Planning and Organizing take place behind closed doors - or in small groups.     I used management skills in church groups and in the community functions. For example,  I will be involved in a meeting on Thursday night in which ideas will be discussed and reviews will be made for saving the libraries in this area from closing.

Our assignment was on the difference between management and leadership.  Our topic was on the CEO of Southwest airlines, Gary Kelly, which I briefly mentioned here.

Our third week (this week) was on managerial decision making process:

I have checked into more videos and research by typing in "the six steps of decision making" although the steps are not always introduced in the same manner, I think it's the same principle, but the emphasis seems to be made more about one step or break into more steps or combine into fewer steps;  I've also noticed a different order.

Brian Perryman (2014) for example, gives eight steps with evaluation at number 6.  Carrie Olson (2015) gives us six steps.  Her evaluation  also appears as number six, while easy presentation 1 (2012) also includes eight steps places evaluation at number 4.

Regardless of what order or how many steps, decision making needs to be thought out.  Identify the problem or situation at hand, gather information and establish criteria (Olson 2015).  A good manager will analyze and choose options.  Unfortunately, it is not a step I see too often.  I don't think "ultimatums" are good choice options.

I have had managers that haven't even been able to identify the problem.  I often wondered how they had been put in the position of manager, to begin with.

There will be some instances when a manager will have to make what appears to be an "instant decision" but just as the "four functions of management" that we discussed last week, we don't always see what goes on behind closed doors.  A good manager has already observed and analyzed situations and environment of  employees are working.  Thus what may appear instantaneous to the employees involved had already gone through a procedure of steps by the manager.

Allow me to give an example from my own work situation.  There was an employee who wasn't pulling his share of the work.  He was a bit crude with his language and did not show respect to his co-workers but the customers loved him.  He evidently had some kind of charisma that only they could see.  He wasn't the top seller, but always in the top two or three.  Management had taken that all into consideration.  It had been weighing on her mind for a couple of months.  She had actually taken the employee aside - I don't know what words were said, but I know he was let go after a while.  Though it appeared to some that her decision had been abrupt,  it really wasn't.

Active listening requires listening from both management and employee  (Denton, 1992). This employee just wasn't willing to listen.

And here is a comment made in response to a class member's post about:

I agree with you that managers don't always follow the six step process.  I have had a few managers who did not even identify or evaluate the problem -  unfortunately not every manager gets to have the training that we will be learning in various classes.

I've also been in situations where the manager (I'll call her Ruth) had interviewed for a position opening at a retail store.  She had called to tell me that I had been chosen, only to call me one hour later to rag on the owner (I'll call him Mac) of the store.  Mac had given Ruth explicit instructions to interview candidates and then decided to hire someone that hadn't even gone through the same procedures as those that had been interviewed.  Ruth was actually more upset about the events that took place than I was. 

I wouldn't have had a problem working for or with Ruth.  I did have a problem with Mac and his interference.   Ruth had used the steps of management assigned.  I don't think Mac took any steps and was oblivious to the problem.  I don't know what became of Ruth, as I did not get the job nor was in a position in which I could just pop in and ask.  I think it's important that an employee has respect for his or her manager.  Equally, I think it's just as important, maybe even more for a manager (or owner) to respect employees.  I think that taking the time to take the proper steps in decision making makes a huge difference in showing respect.

 To avoid an even longer (and possibly boring) post, I will finish up on Monday.  My final thought shouldn't be posted to this blog before I post it to my discussion wall.  Both say roughly the same thing, though what I have saved for my blog gives a bit more detail than what I will post to my discussion.  And at last . . . including a topic that I'm actually passionate about.  Yeah!

Like a Fish out of Water . . . so Far out of My Realm

          I remember taking a communications class in college.  I think it was an elective.  It turned out that there were only seven or eight students, the instructor and me.  We all sat around one table to have discussions.  We were told that we didn't have to purchase a book, but each of us would teach a lesson.

          I was the only student in the class who was not a communication major.  For the most part, they seemed to be talking in languages that I, myself, did not understand. The week before I was assigned to give the lesson, I wrote down the topic name and went to the library to do some research.

          I'd be lying if I didn't say that I had bluffed my way through the assignment.   I had used an example that somehow got out of hand.  The subject I had picked at random was also advertised on a button that one of my classmates had been wearing.  I honestly hadn't noticed until she pointed out.  Or perhaps I had, and used it on a sub-conscience level. It was a good conversation, as I recall, but for the most part, I wasn't even a part of it.  The one wearing the button apologized for steering the class away and getting "off topic".

          "Actually," I said with semi-faked confidence, "This conversation has been a great example of what I was hoping to convey."  And summed up whatever notes I had prepared for the remaining two minutes that were left.

          This mod I am taking two classes: Management Principles and Pre-Algebra.  The math class (once again) is non-credited, and yet I would much rather deal with my math class and not even deal with management - and yet this is a series of eight required management classes.  I honestly don't know what everyone is majoring in, but I get the feeling that many of the students are business majors striving for this coveted management position - or are actually in management positions at this very moment.  

         And then there or those in health care who will obviously need teamwork and leadership skills.  I admire them so much for going into health care as we all depend on them and I am grateful.  And then there is me.  Uncomfortable at the topic of business, seminars, incentive rallies, and big corporations.  I did not move to Myrtle Creek to go corporate. 

          I worked for a chapter of Swire Coca-Cola for a few years when I lived in Salt Lake City, Utah.  Our paychecks were issued out of Atlanta, GA.  I would rather know the person (or people) who sign my paychecks than to feel like a number in the system.  Our department was okay.  Sometimes there'd be some of us who would go out to lunch together, or support each other with wedding showers, baby showers and what have you.  But the turnover of employees was constant - either due to advancement or being let go. 

          I was in the imaging department - working at converting paper documents over to an electronic system.  I did not have to be on the phone, deal with complaints, or handle confrontation.  I was a responsible employee who went in, did my job without supervision, and was comfortable in my situation and really saw nowhere within the company in which I wanted to advance.  I'm introverted.  I enjoy being introverted.  It was an okay job.  I think I would have enjoyed it more if there had been less goofing off and if everyone else had worked as hard I did - or that I could have been paid 2-3 times the amount as I was working three times as hard . . .           

         Several years before that I was at Nordstrom working in the Cafe.  I felt like our department was the pion of all departments and seemed unwelcome participants whenever we were asked to go to meetings . . . we didn't sell the prestige merchandise that glorified the other departments (although I personally wasn't/am not a fan of Nordstrom products; for as much money as one may spend on an item, I should think it would be better made)

         My brother works for the MGM Grand in Las Vegas.  Neither Swire nor Nordstroms was not near as overwhelming as MGM.  What a tremendous mass of people day in and day out.  Too many people.  I felt claustrophobic as a tourist.  How would I ever handle a work situation?  seriously?  I realize there are benefits that come with oversized and prestigious companies that one would not find with a ma and pa store.  But given the opportunity of prestige or ma and pa, I'm going to go with ma and pa.

         

          I love the interaction with small businesses, the socialization of truly knowing those that I work with.  Making a personal connection has always been more important to me than money.  But I'm not saying all big businesses are so focused on money that they forget how to be personal.  Corey says MGM Grand has been great.  I think he is treated like a person for the most part.  I think he's had to force himself into that role, and maybe it doesn't bother him so much.  But Corey is introverted, too. 

           Then again, there are those in health care who I would like to respect and admire who also have to deal with management andI suppose have had their share of conventions and pep rallies. I heard that Costco is a great company to work for. Costco is closed on federal holidays.  Good for them!

        So our first assignment for my management class is to watch a video and visit this website on One Smooth Stone and answer three questions with opinionated answers but also references to back those up.  I am impressed with what they do, but at the same time, pep rallies and incentive seminars really aren't my thing.  Swire used to have those.  A lot of people all gathered in a room and lots of cheering and laughter and what have you.  It was generally overwhelming and out of my comfort zone and I was never happy about having to be there.  There's nothing wrong with being enthusiastic or trying to get your employees excited.  It was the idea of being in a crowded room with a lot of noise that made me squirm.

          It isn't just in a job situation either.  I don't like crowds.  I don't like the applause and cheer drowning out the music.  Or having to stand up every 15 seconds if I want to watch the activity going on in the field.  Why did those people in front of me purchase tickets for seating if they're not going to sit?  Given a chose between intimate gatherings vs. rubbing elbows with glitz and glamour . . .  I'm going for the intimate.  

          I also don't want to be in a management position - which probably doesn't account to what the interviewer wants to hear when I go out to "sell myself" for a job position that everyone else is also applying for.  I do know how to play the game.  But again, I seriously would rather my job be intimate as well as my life.  I need to be happy.  Conventions don't make me happy - even if they're entertaining.  I'd rather watch them on YouTube from the comforts of my own home than sitting on somebody's lap for a better view. 

          I should also be working my assignment rather than creating this post.  It's just so dang hard when there's no passion!  

          Yesterday Roland and I went to the senior event where we watched "Sully".  I'm amazed at all the cautions that were taken and the lack of understanding or communication among those trying to discredit Captain Chesley Burnett “Sully” Sullenberger, I realized that my training for management may have nothing to do with my career or current position, but maybe something greater.